Iran tells Yemen's Houthis to close Bab El Mandeb gateway to the Red Sea if the US hits power network, Reuters reports, citing sources

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Iran has threatened to block the Bab al-Mandab Strait in the Red Sea via Houthi rebels if the U.S. attacks its power grid. As a key chokepoint handling about 12% of global maritime trade is under threat, concerns over global supply chain disruptions are rising. Investors should monitor rising logistics costs and energy price volatility driven by increased geopolitical risk.

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The escalation of tension between the U.S. and Iran introduces a significant risk to global energy transit and logistics. The Bab al-Mandab Strait is a critical corridor for oil and gas shipments to Europe and Asia. A blockade would force ships to reroute around the Cape of Good Hope, leading to severe delays and surging fuel costs. Furthermore, the inflationary pressure resulting from higher freight rates and energy prices may complicate central bank policy paths, adding uncertainty to broader financial markets.

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